Financial Results for the Fiscal Year Ended October 31, 2016
[Japan GAAP] (Consolidated)
Date:

December 7, 2016

Company:

Tomoe Engineering Co., Ltd. and Subsidiaries(URL: http://www.tomo-e.co.jp/index_e.html)

Stock exchange listing:

1st Section, Tokyo Stock Exchange

Head Office:5-15, Kitashinagawa 5-chome, Shinagawa-ku, Tokyo, Japan

President:

Hitoshi Yamamoto

Investor Relations Contacts: Toshiaki Yakura, Director, General Manager of Accounting Division, Tel: (03) 3442-5127
Date of Annual Shareholders Meeting: January 27, 2017
Date of Dividend Payment:

January 30, 2017

Date of Financial Statement: January 27, 2017
Preparation of Supplementary Explanatory Materials for Annual Operating Results: Yes
Briefing Session for Annual Operating Results: Yes (for institutional investors)* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Results for the Year Ended October 31, 2016
(1) Results of Operation (Consolidated)(Percent: change from the previous year)
Operating Income
Ordinary Income

Sales(Millions of Yen)

(Percent)(Millions of Yen)

Year Ended
39,180-0.4
1,970
October 31, 2016
Year Ended
39,354-3.3
1,387
October 31, 2015
(Note) Comprehensive income
Fiscal year ended October 31, 2016: 422 million yen (-65.9%)
Fiscal year ended October 31, 2015: 1,239 million yen (-10.9%)
Net Income Attributable to
Owners of the Parent(Millions of Yen)

(Percent)(Percent)(Millions of Yen)

(Percent)

42.0

1,780

4.5

8.9

1,703

4.5

Net Income
per Share

Fully Diluted Net
Income per
Share

Return on
EquityReturn on
AssetsReturn on
Sales

(Yen)

(Yen)

(Percent)(Percent)(Percent)

3.8

5.1

5.0

4.2

5.0

3.5

Year Ended
968
-5.8
97.10
October 31, 2016
Year Ended
1,028
-6.7
103.08October 31, 2015
(Reference) Equity in earnings (loss) of unconsolidated subsidiaries and affiliates
Fiscal year ended October 31, 2016: None
Fiscal year ended October 31, 2015: None
(2) Financial Condition (Consolidated)
Total Assets (A)Net Assets (B)Net Assets Ratio (B / A)

Net Assets per Share(Millions of Yen)

(Millions of Yen)

(Percent)(Yen)

34,792

25,17372.4

2,522.81

34,341

25,20073.4

2,525.47

Year Ended
October 31, 2016
Year Ended
October 31, 2015

1

(Reference) Net assets
Fiscal year ended October 31, 2016: 25,173 million yen
Fiscal year ended October 31, 2015: 25,200 million yen(3) Cash Flows (Consolidated)
Net Cash Provided(Used) by Operating
Activities
Year Ended
3,744
October 31, 2016
Year Ended(73)
October 31, 2015

Net Cash Provided(Used) by Investing
Activities

Net Cash Provided(Used) by Financing
Activities(Millions of Yen)
Consolidated Cashand Cash Equivalent
as of Year-end

(255)

(449)

8,056

(51)

(449)

5,295

2. Dividend Status
Dividend per Share (Yen)
SecondThird QuarterEnd ofQuarter
Fiscal Year
22.50
22.50
22.50
22.50
22.50
22.50

First Quarter-

Year Ending October 31, 2015
Year Ending October 31, 2016
Year Ending October 31, 2017 (Prospect)

Total
45.00
45.00
45.00

Total Dividend

Dividend Payout Ratio(Consolidated)

Dividend on Equity Ratio(Consolidated)(Millions of Yen)

(Percent)(Percent)

449
449

43.7
46.3
38.1

1.8
1.8

Year Ending October 31, 2015
Year Ending October 31, 2016
Year Ending October 31, 2017 (Prospect)

3. Forecast for the Year Ending October 31, 2017 (Consolidated)(Percent: Change from the previous year for the full business year and 6-month period)
Sales

Operating Income

Ordinary Income(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)(Millions of Yen)

(Percent)

Six-month Period

20,770

4.6

680

-26.0

680

-13.9

Full Business Year

41,700

6.4

1,790

-9.1

1,780

-0.0

Net Income

Net Income per Share(Millions of Yen)

(Percent)(Yen)

Six-month Period

430

-62.1

43.09

Full Business Year

1,180

21.8

118.252

Notes(1) Significant changes in subsidiaries during this period (changes in specific subsidiaries involving changes in thescope of consolidation): None
(2) Changes of the principles, procedures, and representation of the accounting policies
1) Change due to revision of accounting standard: Yes
2) Other changes than the above 1): None
3) Change in accounting estimates: None
4) Retrospective restatements: Yes
For details, please refer to (Changes in accounting principles, changes in accounting estimates andretrospective restatements) of (5) [Notes for Consolidated Financial Statements] of 4. [Consolidated Financial
Statements] on page 20.
(3) Number of outstanding shares (Common stock)1) Number of outstanding shares at year-end (including treasury stocks)
At October 31, 2016: 10,533,200 shares

At October 31, 2015: 10,533,200 shares

2) Number of treasury stocks at year-end
At October 31, 2016: 554,667 shares

At October 31, 2015: 554,667 shares

3) Number of average shares
At October 31, 2016: 9,978,533 shares

At October 31, 2015: 9,978,533 shares*Presentation Concerning Implementation of Audit ProceduresThis financial report is exempt from audit procedures based on the Financial Instruments and Exchange Act. At thetime of disclosure of this financial report, the Company has not completed the audit procedures for financial statements
based on the Financial Instruments and Exchange Act.
*Explanations for appropriate use of the earnings forecast and other special instructions
The forward-looking statements such as a forecast of our financial results described herein are based on theinformation currently available to us and certain assumptions that we believe are reasonable. Actual results could differ
materially due to various factors. For assumptions of the forecasts and necessary precautions, refer to (1) [Analysis ofOperating Results] of 1. [Operating Results and Financial Condition], on page 5.

3

Table of Contents
1. Operating Results and Financial Condition……………………………………………………………………………..5(1) Analysis of Operating Results ……………………………………………………………………………………....5(2) Analysis of Financial Condition………………………………………………………..…………………………..6(3) Basic Policy for Profit Sharing and Dividends for Fiscal 2016 and 2016………………………………….......8(4) Risk Factors in Business……………………………………………………………..…………………………….8
2. Management Policy………………………..……………….…………………………………..…………………………10(1) Basic Management Philosophy………..…………..…….…………………………..……………………………10(2) Target Management Indices………..…………..…….………..……………………..……………………………10(3) Mid- and Long-term Management Strategy…..…….………..……………………..……………………………10(4) Challenges to be Addressed…..…….………………….…….……………………..……………………………10
3. Basic Approach to the Selection of Accounting Standards.………………………………………………………....11
4 Consolidated Financial Statements…………………………………..………………………………………………....12(1) Balance Sheets……………………………………………………………………………………………………...12(2) Consolidated Statements of Income and Statement of Comprehensive Income…………………………….14(3) Consolidated Statements of Changes in Shareholders' Equity………..………..……………………………16(4) Consolidated Statements of Cash Flows………………………………………………………………………...18(5) Notes for Consolidated Financial Statements…………………………………………………………………..20(Notes for premise of going concern)…………………………………………………………………………...20(Changes in accounting principles, changes in accounting estimates and retrospective restatements)…
……………………………………………………………………………………………………………………...20(Additional information)……………………………………………………………………………………….21(Segment information) ……………………………………………………………………………………………...21(Per Share information)………………………………………………………….…………………………………25(Significant subsequent events) ………………………………………………………………………………….25
5 Other Notes…………………………………………………………….………………………………………………....26(1) Appointment of Officers…………………………………………………………………………………………...26

4

1. Operating Results and Financial Condition(1) Analysis of Operating Results[1] General condition of the current consolidated fiscal year
General operating results
During the consolidated fiscal year, exports recovered and business activity, led by external demand, showedsigns of shaking off its lethargy. Yet personal consumption and capital investment remained flat, and conditions
were such that Japan’s economy cannot be said to have begun following a path to an autonomous recovery.
Overseas, concerns about downward pressures on the global economy continued, fostered by the lack ofstrength in the U.S. economic recovery, the delayed recovery of newly developing countries including China, andthe problem of Great Britain’s withdrawal from the EU.
As a result of the above conditions, full-year net sales for the Tomoe Engineering Group slipped 0.4% from theprevious consolidated fiscal year to 39,180 million yen, despite higher net sales in the Machinery & Equipment
Business, as net sales were lower in the Chemical Products Business. With respect to earnings, operating
income was 1,970 million yen, 42.0% up from the previous consolidated fiscal year, with the growth in sales inhighly profitable sectors in the Chemical Products Business and a reduction of selling, general and administrative
expenses, primarily in the Machinery & Equipment Business, being the principal factors. Ordinary income, which
was restrained by foreign exchange losses, came to 1,780 million yen, 4.5% up from the previous consolidated
fiscal year. On the other hand, net income attributable to owners of the parent was 968 million yen, 5.8% downfrom the previous consolidated fiscal year, as the result of booking an asset impairment write-off of consolidated
subsidiary noncurrent assets as an extraordinary loss.
[Summary by business segment](Machinery & Equipment Business)
In the Machinery & Equipment Business, consolidated net sales for the fiscal year were 10,178 million yen, 7.9%
up compared with the previous fiscal year, as sales for domestic public sector demand in general were strong,and sales of machinery, equipment and construction for domestic private sector demand, as well as sales ofequipment and construction and sales of components and repair services for overseas markets, rose higher.
From an earnings aspect, gross profit came to roughly the same level as in the previous fiscal year, despite thegrowth in net sales for the business as a whole, because the value of certain inventory was partially reduced.
Operating income, on the other hand, came to 403 million yen, 45.5% up from the previous fiscal year, because
selling, general and administrative expenses were reduced.
(Chemical Products Business)
In the Chemical Products Business, sales in the electronics materials sector of wire bonding equipment andtransport trays for semiconductor manufacturing applications were lower, and sales of resin and products by thedomestic plastics sector and Tomoe Engineering (Hong Kong) decreased. As a result, full-year consolidated net
sales were 29,002 million yen, 3.1% down from the previous fiscal year.
With respect to earnings, operating income was driven mainly by the growth of products with high profit margins
in the industrial materials sector and the effect of higher net sales in the advanced materials sector, andamounted to 1,566 million yen, 41.1% up from the previous fiscal year.
[2] Outlook for the next fiscal year (November 1, 2016 - October 31, 2017)
During the consolidated fiscal year ending in October 2017, personal consumption will continue along a recovery
trend based on support from various policy effects, and although firms will be seen to keep a prudent stancetoward capital investment, Japan’s economy is expected to achieve a slow-motion recovery centered on upgrade
demand and labor-saving investments. Moreover, a gradual recovery trend is projected to continue as the
upward trend in spending on public works projects retains its momentum, boosted by the government’s economic
policy and outlays for infrastructure construction in the run-up to the Tokyo Olympics, and exports are forecast to
enjoy a recovery trend that is supported by the brisk U.S. economic picture. Overseas, on the other hand,
although the U.S. economy is expected to continue a recovery trend, China’s economy is forecast to follow a5gradual decelerating tendency.
Given such conditions, in the Machinery & Equipment Business a decrease in sales for domestic public sector
demand will be unavoidable because no large-scale projects are anticipated, but we project consolidated net
sales to reach 10,900 million yen, 7.1% up compared with the previous fiscal year, based on a forecasted
increase in both overseas sales, mainly for China and Asia, and sales for domestic private sector demand. On
the other hand, we expect higher selling, general and administrative expenses and project operating income will
come to 405 million yen, 0.4% up compared with the previous year. In the Chemical Products Business,domestically we project higher sales of equipment for semiconductor manufacturing applications in the advanced
materials sector, together with an increase in sales of resin and products at Tomoe Engineering (Hong Kong) anda recovery in the performance of the plastic compounding business in Shenzhen, China, and based on this we
project consolidated net sales to be 30,800 million yen, 6.2% up compared with the previous fiscal year. On theother hand, we will not be able to absorb all of the increase in selling, general and administrative expenses related
to domestic activities, and we project operating income to be 1,385 million yen, 11.6% down compared with theprevious fiscal year.
As a result of these efforts, for the entire Tomoe Engineering Group in the consolidated fiscal year ending October
2017, we project net sales to grow by 6.4% to 41,700 million yen, operating income to decrease by 9.1% to 1,790
million yen, and ordinary income to stand at 1,780 million yen because we do not anticipate to make losses on foreignexchange that lowered the performance in the previous year. Because we do not anticipate any special factors,
including extraordinary income or losses, we project net income attributable to the shareholders of the parent
company to increase by 21.8% to 1,180 million yen.
The operating results forecasts for the next period described above are based on information available to theCompany at the time the forecasts were prepared and assumptions judged to be reasonable. Actual operating
results might differ from these forecasts depending upon changes in domestic and international financial andeconomic conditions, the supply and demand situation, various risk factors and other uncertainties.
(2) Analysis of Financial Condition[1] Assets, Liabilities, and Net Assets
Assets at the end of the current consolidated fiscal year were 34,792 million yen, up 450 million or 1.3% from thebalance at the end of the previous consolidated fiscal year, reflecting decrease in notes and accounts
receivable-trade and asset for retirement benefits, and increase in cash and deposits.
Liabilities were 9,618 million yen, up 477 million yen or 5.2% from the end of the previous consolidated fiscal
year, mainly because of lower payables, and of increased income taxes payable and advances received.
Net assets were 25,173 million yen, 28 million yen or 0.1% down from the end of the previous consolidated
fiscal year. This mainly reflected an increase of retained earnings reported at the current consolidated net
income, and a decrease in the translation adjustments account associated with overseas subsidiaries,
which was affected by the appreciation of the yen.
As a result of the above changes, the equity ratio at the end of the consolidated fiscal year dropped by 1.0
point compared with the end of the previous consolidated fiscal year to 72.4%.
[2] Cash Flow Status
Balance of cash and cash equivalent as of the end of the current consolidated fiscal year decreased by 2,760
million yen to 8,056 million yen from the previous consolidated fiscal year. Status of each cash flow and theirfactors during the current consolidated fiscal year are as follows:(Net Cash Provided by (Used in) Operating Activities)
Net cash provided by operating activities was 3,744 million yen (73 million yen provided during the previous

6consolidated fiscal year). Income before income taxes and minority interests was 1,681 million yen, and notes
and accounts receivable-trade decreased by 1,124 million yen, inventory decreased by 467 million yen.
(Net Cash Provided by (Used in) Investing Activities)
Because purchases of plant, property and equipment were 171 million yen, and purchase of intangible assets
were 67 million yen, the net amount of cash used in investing activities was 255 million yen (51 million yen usedduring the previous consolidated fiscal year).
(Net Cash Provided by (Used in) Financing Activities)
Net cash used in financing activities was 449 million yen (same amount used during the previous consolidated fiscal
year), mainly for the payment of cash dividends.
The trends in cash flow indices are as follows:
Trends in cash flow indicesYear Ended
October 31,
2012

Year Ended
October 31,
2013

Year Ended
October 31,
2014

Year Ended
October 31,
2015

Year Ended
October 31,
2016

66.0

69.8

70.8

73.4

72.4

39.7

46.6

51.7

44.3

44.3

Debt-repayment to Cash
Flow Ratio (Years)

0.8

1.7

0.2

-

0.0

Interest Coverage Ratio(Percent)

115.8

35.6

74.5

-

735.6

Equity Ratio (Percent)
Equity Ratio Based on
Market Value (Percent)

Equity ratio: Net assets/ Total assets
Equity ratio based on market value: Market capitalization of shares / Total assets
Debt-repayment to cash flow ratio: Interest-bearing debt / Cash flow
Interest coverage ratio: Cash flow /Interest payment(Note)
1. All indices are calculated on the basis of consolidated financial figures.
2. Market capitalization is calculated based on the number of outstanding shares excluding treasury stock.
3. Cash flow refers to net cash provided by (used in) operating activities.
4. Interest-bearing debt refers to all debt reported on the consolidated balance sheet for which interest is
being paid.
5. The debt-repayment to cash flow ratio and interest coverage ratio for the year ended October 31, 2016 are
not shown because they were negative.

7

(3) Basic Policy for Profit Sharing and Dividends for Fiscal 2016 and 2017
As its basic policy, the Tomoe Engineering Group will “implement appropriate, stable dividends by seeking toincrease internal reserves to reinforce our financial position and corporate strength, and by considering consolidated
operating results, the group’s medium-term business strategy and other factors in a comprehensive manner.”
Based on the above policy, we plan to pay a dividend of 45 yen per share, including the dividend of 22.5 yen per
share for the consolidated fiscal year ending on October 31, 2016, and the interim dividend of 22.5 yen per share.
For the dividend for the next consolidated fiscal year, we plan to pay 45 yen per share (including an interim dividend
per share of 22.5 yen), based on consideration of the outlook for consolidated operating results.
(4) Risk Factors in Business
The key areas of business risks of our group that might have significant influence on investors’ decision are as follows.
The following judgments are made based on the business information at the end of the current consolidated fiscal
year, although some forward-looking statements are contained.
[1] Influence of Foreign Exchange Fluctuation
Businesses of our group include exports and import in foreign currencies, and exchange rate fluctuations may
affect the values after translation into yen. Operating results and financial condition of our group might be affectedby the range of foreign exchange fluctuation although we make efforts to minimize exchange fluctuation risks byentering into forward exchange contracts. Since our group has overseas subsidiaries, we prepare financial
statements in foreign currencies. In preparing consolidated financial statements, there is a risk associated withexchange fluctuation when converting into yen equivalent.
[2] Potential Risk of Overseas Activities
Our group is engaged in marketing and manufacturing overseas, focusing on China and other Southeast Asian
countries. Our group will monitor the local situations with the greatest care and take appropriate actions on a timely
basis. However, our group’s operating results and financial condition might be affected by unforeseen
circumstances arising from local political conditions, governments, legal restrictions, taxation systems, customs,
etc.
[3] Risk Associated with Quality of Goods and Products
The products of our group are manufactured by paying due attention based on systematic quality control. The
products that require technical development might cause risk of having cost of repair and replacement. Also, since
our group is not directly involved in manufacturing of many of imported raw materials, defects that our group is notdirectly associated with may occur and we might be obligated to cease sales and collect such materials. Although
we are prepared to take prompt and appropriate actions to cope with the risks involved in quality of manufactured
products and commercial goods, it may affect our group’s operating results and financial condition to the extent of
the problem.
[4] Risks of New Investment
Our group is in a quest to pursue high-value-added business all the time. To do this, we must take measures suchas aggressive investment in some situations; however, these measures may involve higher potential risks thanconventional business risks. Even though we take such sufficient preparations and measures, some unexpected
events may result in affecting operating results and financial condition of our group.

8[5] Risks when a Natural Disaster Occurs
Our group is implementing various risk measures, including seismic performance improvements to buildings andstructures (including rental properties), preparation of emergency response procedures, data backup
enhancements and the introduction of a system to confirm executive and employee safety, and working toprepare a business contingency plan (BCP). Although we are implementing such measures, however, there is apossibility our production capacity or sales capabilities might be substantially reduced by the occurrence of alarge-scale natural disaster to which we cannot respond, and business opportunities could be lost and ouroperating results and financial position might be affected as a result.

92. Management Policy(1) Basic Management Philosophy
Our basic management philosophy is to contribute to society and provide a good quality of life to people involved
through growth and development of our company with spirit of creation and entrepreneurship and to provide ourcustomers with high level of technologies and excellent products. Guided by this policy, we shall be engaged in
the manufacture and sale of machinery based primarily on solid-liquid separation techniques and importation ofunique and specialty raw materials for chemical industry.
(2) Target Management Indices
Rather than just aiming for a volume growth, in our Machinery & Equipment Business we always try to develop
and sell products that require specialized technology, while in our Chemical Products Business we seek to handle
unique, high value-added products that demand expertise, even if their market is not so large. To pursue thesegoals, we regard improvement of profitability as our primary management goal. As a management indicator formeeting these goals, we give highest priority to ordinary income, which directly expresses the nature and changeof profitability.
(3) Mid- and Long-term Management Strategy
The long-term management strategy of Machinery & Equipment Business is to develop new products, reduce
manufacturing cost, and expand business overseas, and that of Chemical Products Business is to discoverunique new commercial products, to seek new customers and to deploy business aggressively for overseas
markets.
To achieve continuous progress on our basic strategy, in November 2016 we formulated the Eleventh
Mid-term Management Plan “Challenge For Change” (from November 1, 2016 to October 31, 2019). The
plan is devoted mainly to implementing measures based on the following policies after newly identifying theideal approach to allocating management resources and implementing marketing strategies. Morespecifically, in the Machinery & Equipment Business, we will expand foreign sales centered on North and SouthAmerica, China and Southeast Asia, while increasing domestic sales of our low-power, energy-saving centrifuge.
In the Chemical Products Business, we set key strategies to increase overseas sales by developing new markets
and new commercial products mainly in Southeast Asian market, and to maintain our market share of the existing
business by implementing measures to meet customer needs. The forecasted consolidated operating results forthe fiscal year ending October 2016, the final year of our medium-term management plan period, are shown at the
beginning of these financial results. Although we find ourselves at this time in circumstances under which we must
anticipate a substantial contraction of our business for oil wells in the North and South America markets, which arebeing affected by the deterioration of the external environment, including the decline in crude oil prices, the Tomoe
Engineering Group will continue to aggressively address these various management challenges and move
forward to improve its operating results.
(4) Challenges to be Addressed
Although personal consumption is on a recovery trend that is underpinned by the results of various policy
measures, and firms will be seen to be maintaining a prudent stance toward capital investment, Japan’s economy
is expected to maintain its slow-motion recovery centered on upgrades and maintenance and labor-saving
investments. Moreover, the positive trend in spending on public works projects will continue, driven by thegovernment’s economic policy as well as infrastructure construction for the Tokyo Olympics, and exports are also
expected to enjoy a sustained gradual recovery thanks to a forecasted shift to renewed growth supported by the10brisk U.S. business environment. On the other hand, overseas the U.S. economy is expected to continue its
recovery trend, but China’s economy will be seen to be shifting to a gradual deceleration trend. The Tomoe
Engineering Group recognizes that given such circumstances, achieving growth in its overseas business is apriority issue, and in the Machinery & Equipment Business we will concentrate on broadening our marketing
channels through agents that have sales and development capabilities primarily in Southeast Asia, India, and the
Middle East, undertake new development efforts to maintain and expand our business in China, and work to boost
sales by developing markets other than oil wells in North America and Latin America. In the Chemical Products
Business, we will focus on business development and seek growth mainly in Southeast Asia, where we
strengthened the operating base of the Thailand affiliates we established during 2016. In other areas, we willbolster efforts in our existing businesses in regions such as Africa and Russia, and link this to business growth. In
addition, once we have stabilized operations and strengthened the production and quality control systems for ourbusiness in Shenzhen, China following relocation of the Interstella Plastics’ compound plant, we will work to further
expand our business by concentrating on mass production for new customers and additional business withexisting customers and developing measures to further enhance production efficiency.
To steadily execute these issues, the Company’s policy is to train the human resources who will be responsible
for the Company’s globalization, and work to achieve sustained growth in both of the Company’s businesses
and bolster its capacity to generate stable earnings, by promoting management policies based on Tomoe’s 11th
Medium-Term Management Plan.
In the future we will strive to ensure management in full compliance with the letter and spirit of the law andimprove corporate ethics, and from a risk management perspective we will maintain efforts to create andenhance business contingency plans that envisage large-scale natural disasters.

3. Basic Approach to the Selection of Accounting Standards
At the present time the Tomoe Engineering Group has adopted Japan GAAP, based on factors such ascomparability between firms, and the Group’s policy concerning the application of IFRS will be to respond whilereferring to outside trends and other considerations.

114. Consolidated Financial Statements(1) Balance Sheets(Thousands of Yen)
Year Ended October 31, 2015

Year Ended October 31, 2016

Cash and Deposits

5,295,280

8,056,223

Notes and Accounts Receivable-Trade

13,366,974

11,618,030

Electronically Recorded Monetary Claims

1,208,300

1,702,590

Merchandise and Finished Goods

2,883,186

2,746,735

Work in Process

1,428,858

1,166,982

Raw Materials and Supplies

814,139595,198

Deferred Tax Assets

415,636

500,420

Others170,571-5,309282,133

25,577,638

26,663,670

4,414,855

4,316,576

Accumulated Depreciation-1,554,623-1,592,835

Buildings and Structures, Net

2,860,232

2,723,740

Machinery, Equipment and Vehicles

4,105,001-3,469,389

3,659,243-3,215,574

635,612443,669

1,934,976

1,931,071

120

96,763

1,094,481

983,261-1,004,257-919,694

90,22363,567

5,521,164

5,258,812

362,505

304,807

Investment Securities

1,189,880

1,149,211

Guarantee Deposits

83,64589,8091,506,899

1,242,576

Others122,346

110,849

Allowance for Doubtful Accounts-22,775-27,664

Total Investments and Other Assets

2,879,996

2,564,783

Total Noncurrent Assets

8,763,665

8,128,402

Total Assets

34,341,304

34,792,072

AssetsCurrent Assets

Allowance for Doubtful Accounts
Total Current Assets-4,645

Noncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Accumulated Depreciation
Machinery, Equipment and Vehicles, Net
Land
Construction in progress
Others
Accumulated Depreciation
Others, Net
Total Property, Plant and Equipment
Intangible Assets
Investments and Other Assets

Net Defined Benefit Assets

12(Thousands of Yen)
Year Ended October 31, 2015

Year Ended October 31, 2016

5,767,855

3,667,658

Electronically Recorded Monetary Debt

68,5891,891,465

Accounts Payable-Others

557,504

558,442

Income Taxes Payable

182,965

632,403

Advances Received

105,602333,999

Provision for Bonuses

701,392

802,914

Provision for Directors' Bonuses

42,37450,352

Allowance for Product Warranty

122,478

107,349

Others269,841

424,583

7,818,605

8,469,170

Liabilities and Net Assets
Liabilities
Current Liabilities
Notes and Accounts Payable-Trade

Total Current Liabilities
Noncurrent Liabilities
Provision for Directors' Retirement Benefits

5,460

5,460

54,05256,135

1,262,702

1,087,402

Total Noncurrent Liabilities

1,322,214

1,148,998

Total Liabilities

9,140,820

9,618,169

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

22,313,936-363,591

22,833,826

Total Shareholders’ Equity

24,494,965

25,014,855

Accumulated Other Comprehensive Income
Valuation Difference on Available-for-Sale
Securities
Deferred Gains or Losses on Hedges

330,518

299,418748-17,813415,072-40,820

90,213-212,770

Total Accumulated Other Comprehensive Income

705,518

159,048

Total Net Assets

25,200,484

25,173,903

Total Liabilities and Net Assets

34,341,304

34,792,072

Net Defined Benefit Liabilities
Deferred Tax Liabilities

Net Assets
Shareholders’ Equity

Treasury Stock

Foreign Currency Translation Adjustment
Total Adjustment on Net Defined Benefit

13-363,591

(2) Consolidated Statements of Income(Thousands of Yen)
Year Ended October 31, 2015

Year Ended October 31, 2016

Net Sales

39,354,572

39,180,324

Cost of Sales

31,541,093

30,903,454

Gross Profit

7,813,479

8,276,870

Selling, General and Administrative Expenses

6,426,114

6,306,828

Operating Income

1,387,365

1,970,041

Interest income

14,047

5,842

Dividends Income

26,557

24,696

Rent Income

6,932

6,831

Non-Operating Income

Foreign Exchange Gains

257,943

Others33,26825,876

338,750

63,247

Interest Expenses

454

5,089

Commission Paid

9,500

9,508

Sales Discount

5,668

5,829

-

223,031

7,148

9,706

Total Non-Operating Expenses

22,770253,164

Ordinary Income

1,703,344

1,780,124Total Non-Operating Income-

Non-Operating Expenses

Foreign Exchange Losses
OthersExtraordinary Income
Gain on Sales of Noncurrent Assets

27,383Gain on Sales of Investment Securities

58,703Gain on Liquidation of Affiliated Company

16,8594,510-

102,946

4,510

120,646

101,908

Loss on Sales of Investment Securities

-

1,377

Total Extraordinary Losses

120,646

103,286

1,685,644

1,681,348

Income Taxes-Current

519,874

868,544

Income Taxes-Deferred

137,177-156,119

Total Income Taxes

657,052

712,424Net Income
Net Income Attributable to
Owners of the Parent

1,028,591

968,923

1,028,591

968,923

Total Extraordinary Income
Extraordinary Losses
Loss on Impairment

Income before Income Taxes

14

Consolidated Statements of Comprehensive Income(Thousands of Yen)

Net Income

Year Ended October 31,

Year Ended October 31,

2015

2016
1,028,591

968,923-31,099

Deferred Gains or Losses on Hedges

25,033-523

Foreign Currency Translation Adjustment

103,462-324,858

Adjustment on Net Defined Benefit

82,672-171,950

Total Other Comprehensive Income

210,645-546,470

Comprehensive Income

1,239,237

422,452(Breakdown)Comprehensive Income Attributable to Owners of the
Parent1,239,237

422,452

Other Comprehensive Income
Valuation Difference on Available-for-sale Securities

15-18,562(3) Consolidated Statements of Changes in Shareholders' Equity
Previous Consolidated Fiscal Year (Year Ended October 31, 2015)(Thousands of Yen)
Shareholders' Equity
CommonStock
Surplus during Previous
Fiscal Year
Cumulative Effect of
Accounting Changes
Surplus Reflecting
Accounting Changes
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributable to
Owners of the Parent
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This Fiscal
Year

CapitalSurplus1,061,210

Retained
Earnings

1,483,410

21,267,920

Issued Shares
Reacquired-363,591

466,457
1,061,210

1,483,410

21,734,378

Total Net
Assets23,448,949
466,457-363,591

23,915,407-449,033-449,033

1,028,591

1,028,591――

579,557―

579,557

1,061,210

1,483,410

22,313,936-363,591

24,494,965

Accumulated Other Comprehensive Income
Valuation
Difference on
Available-for-sale
Securities

Surplus during Previous
Fiscal Year
Cumulative Effect of
Accounting Changes
Surplus Reflecting
Accounting Changes
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributableto Owners of the Parent
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This
Fiscal Year

305,484

Deferred
Gains or
Losses on
Hedges1,272

Foreign
Currency
Translation
Adjustment

311,609

Total Net
DefinedBenefit-123,493

Total Other
Comprehensive Income

494,873

Total Net
Assets23,943,822
466,457

305,484

1,272

311,609-123,493

494,873

24,410,280-449,033
1,028,591
25,033-523

103,462

82,672

210,645

210,645

25,033-523

103,462

82,672

210,645790,203

330,518748

415,072-40,820705,518

25,200,484

16

Current Consolidated Fiscal Year (Year Ended October 31, 2016)(Thousands of Yen)
Shareholders' Equity
CommonStock
Surplus during Previous
Fiscal Year
Cumulative Effect of
Accounting Changes
Surplus Reflecting
Accounting Changes
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributable to
Owners of the Parent
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This Fiscal
Year

CapitalSurplus1,061,210

Retained
Earnings

1,483,410

22,313,936

Issued Shares
Reacquired-363,591

Total Net
Assets24,494,965-

1,061,210

1,483,410

22,313,936-363,591

24,494,965-449,033-449,033

968,923

968,923--

519,889-

519,889

1,061,210

1,483,410

22,833,826-363,591

25,014,855

Accumulated Other Comprehensive Income
Valuation
Difference on
Available-for-sale
Securities

Surplus during Previous
Fiscal Year
Cumulative Effect of
Accounting Changes
Surplus Reflecting
Accounting Changes
Changes during This
Fiscal Year
Cash Dividend Paid
Net Income Attributableto Owners of the Parent
Total (Net) Amount
Changed (Except
Shareholders' Equity)
Total Amount Changed
Surplus during This
Fiscal Year

330,518

Deferred
Gains or
Losses on
Hedges748

Foreign
Currency
Translation
Adjustment

415,072

Total Net
DefinedBenefit-40,820

Total Other
Comprehensiv
e Income

705,518

Total Net
Assets

25,200,484-

330,518748

415,072-40,820705,518

25,200,484-449,033
968,923-31,099-18,562-324,858-171,950-546,470-546,470-31,099-18,562-324,858-171,950-546,470-26,581

299,418-17,813

90,213-212,770

159,048

25,173,903

17

(4) Consolidated Statements of Cash Flows(Thousands of Yen)
Year EndedYear Ended

October 31, 2015

October 31, 2016

Net Cash Provided by (Used in) Operating Activities
Income before Income Taxes and Minority Interests

1,685,644

1,681,348

Depreciation and Amortization

444,518(32,360)

400,479

Increase (Decrease) in Provision for Directors' Bonuses

5,473

7,978

Increase (Decrease) in Allowance for Product Warranty
Increase (Decrease) in Net Defined Benefit Liability(101,140)
4,893(15,128)

Decrease (Increase ) in Net Defined Benefit Asset(65,760)(13,220)(42,773)(162)(40,605)

4,225

Increase (Decrease) in Provision for Bonuses

Increase (Decrease) in Provision for Directors' Retirement Benefits
Increase (Decrease) in Allowance for Doubtful Accounts
Interests and Dividends Income
Interest Expenses

454(34,092)

Foreign Exchange Losses (Gains)
Loss (Gain) on Sales of Investment Securities
Loss (Gain) on Liquidation of Affiliated Company
Loss on Impairment
Loss (Gain) on Sales of Noncurrent Assets
Decrease (Increase) in Notes and Accounts
Receivable-Trade
Decrease (Increase) in Inventories
Increase (Decrease) in Notes and Accounts Payable-Trade
Increase (Decrease) in Accounts Payable-Others

106,407

2,953(30,539)
5,089
188,234(58,703)(16,859)(3,132)

120,646(27,383)

101,908(367,977)

1,124,173(349,869)(56,535)

467,794-(186,024)
3,243

Increase (Decrease) in Advances Received

41,709(364,900)

242,526

Others, Net(17,051)

95,713756,717

4,154,480

42,225(454)

31,173(5,089)(872,427)(436,502)(73,939)3,744,062

Sub totalInterests and Dividends Income Received
Interest Expenses Paid
Income Taxes Paid
Net Cash Provided by (Used in) Operating Activities

18

(Thousands of Yen)
Year EndedYear Ended

October 31, 2015

October 31, 2016

Net Cash Provided by (Used in) Investment Activities
Disbursement to Time Deposits(3,200,000)(3,400,000)

Proceeds from Withdrawal of Time Deposits

3,200,000

3,400,000

Purchase of Property, Plant and Equipment(419,792)(171,539)

Proceeds from Sales of Property, Plant and Equipment-

Purchase of Intangible Fixed Assets

51,888(34,999)(67,495)

Purchase of Investment Securities(16,845)(18,178)

Proceeds from Sales of Investment Securities

9,702

Payments of Loans Receivable

156,049(3,240)

Collection of Loans Receivable

3,068

3,217

Guarantee Deposits (Increase)215,734(3,684)(9,281)(51,822)(255,870)(449,033)(449,033)(449,033)(449,033)

208,452(278,215)(366,342)

2,760,942

5,661,622

5,295,280

5,295,280

8,056,223

Others, Net
Net Cash Provided by (Used in) Investment Activities(870)(1,424)

Net Cash Provided by (Used in) Financing Activities
Cash Dividends Paid
Net Cash Provided by (Used in) Financing Activities
Cash and Cash Equivalents
Effect of Exchange Rate Change on Cash and Cash
Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of This Fiscal Year19

(5) Notes for Consolidated Financial Statements(Notes for premise of going concern)
There are no pertinent matters to report.
(Changes in accounting principles, changes in accounting estimates and retrospective restatements)(Application of the Accounting Standard for Business Combinations and related standards)
Beginning from the current consolidated fiscal year, the Tomoe Engineering Group will apply the Accounting Standard
for Business Combinations (Accounting Standards Board of Japan (ASBJ) Statement No. 21), Accounting Standard forConsolidated Financial Statements (ASBJ Statement No. 22) and Accounting Standard for Business Divestitures(ASBJ Statement No. 7), and has changed the presentation of “Net income” and the presentation from “Minority
interests” to “Non-controlling interests”. To reflect this change in reporting method, the Company has made certain
reclassifications to its consolidated financial statements for the prior consolidated fiscal year.
(Application of Practical Solution on a Change in Depreciation Method Due to Tax Reform 2016)
In conjunction with amendment of the Corporation Tax Law, beginning from the current consolidated fiscal year the
Tomoe Engineering Group will apply the Practical Solution on a Change in Depreciation Method Due to Tax Reform
2016 (ASBJ Practical Issue Task Force (PITF) No. 32), and has changed its depreciation method for buildings andattached facilities and structures acquired on and after April 1, 2016 from the declining balance depreciation method tothe straight-line depreciation method.
The effect of this change on earnings is not material.
(Changes in reporting method)(Change related to the Consolidated Balance Sheets)
Because the monetary materiality of the “Electronically recorded monetary claims” that had been included in “Notes
and Accounts Receivable-Trade” and the “Electronically recorded obligations” that had been included in “Notes andAccounts Payable-Trade” in the previous consolidated fiscal year has increased, beginning from the current
consolidated fiscal year these items have been classified separately. To reflect this change in reporting method, theCompany has reclassified the 14,575,274,000 yen reported in “Notes and Accounts Receivable-Trade” in the
consolidated financial statements for the previous consolidated fiscal year as “Notes and Accounts Receivable-Trade”
of 13,366,974,000 yen and “Electronically recorded monetary claims” of 1,208,300,000 yen, and reclassified the5,836,444,000 yen reported in “Notes and Accounts Payable-Trade” in the consolidated financial statements for theprevious consolidated fiscal year as “Notes and Accounts Payable-Trade” of 5,767,855,000 yen and “Electronicallyrecorded obligations” of 68,589,000 yen, respectively.
(Change related to the Consolidated Statements of Cash Flows)
Because the “Increase (Decrease) in Accrued Consumption Taxes” that was reported in Net Cash Provided by (Usedin) Operating Activities in the previous consolidated fiscal year has decreased in importance, the Company hasreported this item by including it in “Other” beginning from the current consolidated fiscal year. To reflect this change inreporting method, the Company has made certain reclassifications to its consolidated financial statements for the priorconsolidated fiscal year.
As a result, in the Consolidated Statements of Cash Flows for the previous consolidated fiscal year the Company has
reclassified the “Increase (Decrease) in Accrued Consumption Taxes” of -43,448,000 yen that was reported in Net
Cash Provided by (Used in) Operating Activities in the previous consolidated fiscal year as “Other” of 26,397,000 yen
and “Other” of -17,051,000 yen.

20

(Additional information)
With the promulgation of the Act for Partial Revision of the Income Tax Act Etc. (Act No. 15 of 2016) and the Act for
Partial Revision of the Local Tax Act (Act No. 13 of 2016) on March 29, 2016, Japan’s corporate tax rate andbusiness tax rate will be changed in the consolidated fiscal year beginning on or after April 1, 2016. In conjunction
with this change, the statutory effective tax rate used to calculate deferred tax assets and deferred tax liabilities will
be revised from 32.26% applied in the past to 30.86% for temporary differences expected to be eliminated in the
consolidated fiscal years that begin on November 1, 2016, and on November 1, 2017, and to 30.62% for temporary
differences expected to be eliminated in the consolidated fiscal years that begin from November 1, 2018.
As a result, deferred tax liabilities (the amount after deducting deferred tax assets) have been reduced by
47,405,000 yen. In addition, income taxes-deferred reported for the current consolidated fiscal year decreased by
36,391,000 yen, valuation difference on available-for-sale securities increased by 6,345,000 yen and deferred gains
or losses on hedges decreased by 360,000 yen, and total adjustment on net defined benefit increased by 5,029,000
yen.
(Segment information)
1. Summary of reporting segments
TOMOE Engineering Co., Ltd. has established two operational headquarters. These operational headquarters aredeveloping their business activities by planning comprehensive domestic and overseas strategies for the respective
manufactured and commercial products they handle.
We therefore have assumed these two businesses, referred to as the “Machinery & Equipment Business” and the“Chemical Products Business”, as our company reporting segments. The Machinery & Equipment Business mainly
manufactures and sells centrifuge decanters, and the Chemical Products Business mainly manufactures, stocks
and sells chemical industry products.
The Company’s reporting segments are those units of the Company’s for which discrete financial information isavailable and for which the Board of Directors regularly conducts a review for the purpose of making decisions about
resources to be allocated to the segments and assess the segments' performance.
2. Method for calculating amounts of net sales, income or loss, assets, liabilities and other items for each reporting
segment
The accounting methods for reporting segments are identical to the accounting methods adopted for preparation of
the consolidated financial statements.

3. Information concerning the amount of net sales, income or loss, assets, liabilities and other items for each reporting
segment

21

Previous Consolidated Fiscal Year (Year Ended October 31, 2015)(Thousands of Yen)
Consolidated
Amount of
Financial
Adjustment
Statements
Note 1
Reported
AmountReporting segment
Machinery &Equipment
Business
Sales
Sales to Unaffiliated Customers
Internal Sales Among Segments
or Amount Transferred
Total
Segment Income
Segment Assets
Other Items
Depreciation & Amortization
Increase in Property, Plant &Equipment and Intangible Assets

Chemical
Products
Business

Total

9,428,743

29,925,829

39,354,572

-

-

-

-

-

9,428,743
277,115
10,847,484

29,925,829
1,110,250
17,007,658

39,354,572
1,387,365
27,855,143

00
6,486,161

39,354,572
1,387,365
34,341,304

324,469

120,049444,518-

444,518

242,854

195,246

438,101-

438,101-

39,354,572(Notes)1. The adjustment amount for segment assets is the assets of the entire company that cannot be allocated to eachreporting segment, and is mainly idle operating funds (cash on hand and in banks), long-term investments(investment securities) and assets acquired in relation to a district redevelopment project.
2. The total amount for segment income agrees with the operating income reported on the Consolidated Statement of
Income.
Current Consolidated Fiscal Year (Year Ended October 31, 2016)(Thousands of Yen)
Amount ofConsolidated
Adjustment
Financial
Note 1
Statements
Reported
AmountReporting segment
Machinery &Equipment
Business
Sales
Sales to Unaffiliated Customers
Internal Sales Among Segments
or Amount Transferred
Total
Segment Income
Segment Assets
Other Items
Depreciation & Amortization
Increase in Property, Plant &Equipment and Intangible Assets

Chemical
Products
Business

Total

10,178,070

29,002,253

39,180,324-

39,180,324

-

-

-

-

-

10,178,070
403,271
10,094,483

29,002,253
1,566,770
15,491,154

39,180,324
1,970,041
25,585,638

9,206,434

39,180,324
1,970,041
34,792,072

305,050

95,429400,479-

400,479

124,823

120,786

245,610-245,610(Notes)1.The adjustment amount for segment assets is the assets of the entire company that cannot be allocated to eachreporting segment, and is mainly idle operating funds (cash on hand and in banks), long-term investments(investment securities) and assets acquired in relation to a district redevelopment project.
2. The total amount for segment income agrees with the operating income reported on the Consolidated Statement of
Income.

22

(Related information)
Previous Consolidated Fiscal Year (Year Ended October 31, 2015)
1. Information by product and service
The Company has omitted a description of information by product and service because this same information isdisclosed in segment information.

2. Regional Information
1. Net Sales(Thousands of Yen)

Japan

Asia

32,109,163

5,358,191

OthersTotal

1,887,218

39,354,572(Note)Net sales are classified by country or region based on the customer’s location.
2. Property, Plant and Equipment
Japan
5,157,870

Asia
182,690(Thousands of Yen)
OthersTotal

180,604

5,521,164

3. Main Customer Information
The Company has omitted a description of sales to outside customers because there are no customers to which sales
account for more than 10% of the net sales reported in the Consolidated Statements of Income.
Current Consolidated Fiscal Year (Year Ended October 31, 2016)
1. Information by product and service
The Company has omitted a description of information by product and service because this same information isdisclosed in segment information.
2. Regional Information
1. Net SalesJapan
32,083,421(Thousands of Yen)Asia
6,100,561

Others996,340

Total
39,180,324(Note) Net sales are classified by country or region based on the customer’s location.

2. Property, Plant and Equipment
Japan4,976,297

Asia
136,315(Thousands of Yen)
Others146,200

Total
5,258,812

3. Main Customer Information
The Company has omitted a description of sales to outside customers because there are no customers to which sales
account for more than 10% of the net sales reported in the Consolidated Statements of Income.

23

(Information concerning impairment losses on fixed assets by reporting segment)
Previous Consolidated Fiscal Year (Year Ended October 31, 2015)(Thousands of Yen)

Reported segments
Machinery &Equipment
Business
Impairment loss

Chemical
Products
Business

120,646

Subtotal-

Elimination at
the Company

120,646

Total-

Current Consolidated Fiscal Year (Year Ended October 31, 2016)

120,646(Thousands of Yen)

Reported segments
Machinery &Equipment
Business
Impairment loss

1,505

Chemical
Products
Business

Subtotal

100,403

101,908

Elimination at
the Company

Total

-

(Information concerning amortization of goodwill and unamortized balances by reporting segment)
There are no pertinent matters to report.
(Information concerning gain on negative goodwill by reporting segment)
There are no pertinent matters to report.

24

101,908

(Per Share Information)
Year EndedYear Ended

October 31, 2015

October 31, 2016
47

Net Asset per Share¥2,525.

¥2,522.81

Net Income per Share¥103.08¥97.10(Note 1) Income per share for this fiscal year after adjustment of the residual securities is not presented as there are noresidual securities.
(Note 2) Calculation basis for net income per share are as follows:Year EndedYear Ended

October 31, 2015

October 31, 2016

Net Income for this Fiscal Year (thousands of yen)

1,028,591

968,923Net Income for Common Stock (thousands of yen)

1,028,591

968,923

Average number of Common Stock during the Fiscal Year9,978,533

9,978,533(Note3) Calculation basis for net asset per share are as follows:

Total for Net Asset in Consolidated Balance Sheet(thousands of yen)
Net Asset for Common Stock (thousands of yen)
Number of Common Stock used for calculation of Net Assets
per Share (share)(Significant subsequent events)
None
.

25

Year EndedYear Ended

October 31, 2015

October 31, 2016

25,200,484

25,173,903

25,200,484

25,173,903

9,978,533

9,978,533

5. Other Notes(1) Appointment of Officers
On August 26, 2016 Tomoe Engineering Co., Ltd. released a “Notice of transferring administration affairs to the company
that establishes Audit & Supervisory Committee”. After the transfer the following appointment of officers was internallydecided at a meeting of Board of Directors held on December 7, 2016.
With regard to this appointment the Board of Directors and Audit & Supervisory Committee will make an official
appointment after the 87th Annual Shareholders Meeting to be held on January 27, 2017. The Company will release a
notice regarding partial amendments of the articles of incorporation associated with the transfer immediately after thedecision becomes final.
1) Appointment of Directors (excluding the directors who were appointed as a member of Audit & Supervisory
Committee)
Name

New Position

Current Position

Remarks

Hitoshi Yamamoto

Representative Director

Same as on the left

Reappointed

Yoshito Homma

Senior Managing Director

Same as on the left

Reappointed

Same as on the left

Reappointed

Same as on the left

Reappointed

Same as on the left

Reappointed

Same as on the left

Reappointed

Same as on the left

Reappointed

Same as on the left

Reappointed

Same as on the left

Reappointed

Manager, Machinery & Equipment Div.,

Newly appointed

Machinery & Equipment Div.
Tetsuo Yamada

Senior Managing Director
Chemical Products Div.

Masayoshi Fukazawa

Senior Managing Director
General Affairs Div. and Business
Coordination Div.

Akitomo Tamai

Director and Deputy Manager, Chemical
Products Div. (Synthetic Resin andIndustrial Materials Dept.), Manager ofBusiness Development in China

Jun Ohashi

Director

and

DeputyManager,

Machinery & Equipment Div. (in chargeof Production), Manager of Sagami Plant
Akiyoshi Shinoda

Director and Deputy Manager, Chemical
Products Div. (in charge of Advanced
Materials Dept. Electronic Materials
Dept. and Fine Chemicals Dept.)

Masahiko Nakamura

Director

and

DeputyManager,

Machinery & Equipment Div. (in chargeof Environmental Equipment

Sales

Dept.)
Toshiaki Yagura

Director and Manager of Management
Planning Dept. and Accounting Div.

Masahiko Ito

Director

and

DeputyManager,

Machinery & Equipment Div. (in charge

Osaka branchof Industrial Machinery Sales Dept. andOverseas Sales Dept.)262) Candidates for Director of Audit & Supervisory Committee
Name
Mitsuo Matsumoto

New Position

Current Position

Director as an Audit & Supervisory

Remarks

Standing Auditor

Newly appointed

Standing Auditor (Outside Auditor)

Newly appointed

Outside Director

Reappointed

Outside Auditor

Newly appointed

Committee member
Toshiharu Murase

Director as an Audit & Supervisory
Committee member (Outside Director)

Yutaka Imai

Director as an Audit & Supervisory
Committee member (Outside Director)

Makoto Makamura

Director as an Audit & Supervisory
Committee member (Outside Director)

3) Directors scheduled to retire
Name
Kunihiko Murakami

Current Position
Director

and

DeputyManager,

Machinery & Equipment Div. (in chargeof Industrial Machinery Sales Dept. andOverseas Sales Dept.)

4) Candidate for substitute of Director, Audit & Supervisory Committee member
Name
Tatsuo Hasunuma

New Position

Current Position

Substitute Director as an Audit &Supervisory

Committee

Substitute Auditor (Outside Auditor)

member(Outside Director)

27

Remarks
Newly appointed